Agenda Item for Dec 4th Lucara Board Mtg - Share BuybackI hope that someone at Lucara Diamond's
Headoffice checks the blog sites on occassion.
Suffice to say a lot of long term investors are not pleased with the recent SP performance
Operationally and revenue wise great results - but this has not been reflected in the share price.
The SP is trading at a large discount to value and one way for a corporation to take advantage of this situation is to declare a share buyback plan - the stock market and financial analysts
should respond by reflecting a higher share price/target share price - if the market doesn't respond to this announcement with a higher SP (like all the other recent positive news announcements) - then the win is still fewer shares and a higher EPS. Also if you go this route - why not halt the TSX market in mid-day trading with is announcement.
Could be too many day traders that load up on stock prior to scheduled announcments
and sell on the news that drives the SP down. Don't see any scheduled news results now until 2015 which allows for the stock price to stagnate or wallow downwards.
There are other stocks that pay much higher dividends in the market - Lucara Diamonds needs to reflect value back to shareholders with an increasing Stock Price..IMHO